Economics

ECB's Whatever-It-Takes Toolbox Means Italy Must Blink First

  • The ECB of 2018 is far more powerful than in the 2012 crisis
  • Central bank’s biggest backstop tool comes with conditions

ECB's Draghi Ran Out of Ammunition for Italy, Academic Mody Says

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The European Central Bank has a decade of crisis-fighting experience to draw on to confront market turmoil in Italy, the euro zone’s third-biggest economy.

The institution that once failed to stem a blowout of bond yields with tentative purchases of sovereign debt from affected countries has morphed into a more self-confident actor with a toolbox that includes a meaningful, if untested, backstop to defend the single currency.